Raids on cryptocurrency trading offices in India after WazirX BIG tax fraud

Cryptocurrency exchange companies have been raided by the Directorate General of GST Intelligence after WazirX fraud detection.

Cryptocurrency trading companies are raided by the DGGI. (Reuters)

The New Year has not been good for cryptocurrency exchange companies in India. After the DGGI raided the offices of WazirX and imposed a massive fine for their tax frauds, offices of other major cryptocurrency services are being raided by the Directorate General of GST Intelligence. In a recent update from an ANI report, a mega tax evasion was detected by the DGGI.

On December 31, WazirX was slapped with a massive tax fraud fine of ₹40 crores. The cryptocurrency exchange company was found to evade a total tax figure of ₹40.5 crores and were able to recover ₹49.2 crores in cash. This was related to the GST evaded, interest and penalty from the cryptocurrency exchange WazirX. The raid was conducted by the GST Mumbai East Commissionerate of Mumbai Zone on December 31, 2021.

Cryptocurrency offices fined for tax fraud

“After Cryptocurrency exchange WazirX, offices of major Cryptocurrency service providers across the country are searched by Directorate General of GST Intelligence officials. Massive tax evasion was detected by DGGI. More details awaited: Official Sources told ANI,” tweeted ANI.

More details on the situation are awaited at the moment.

India has seen a lot of interest in cryptocurrency trading, especially with the advent of these trading firms.

In the case of the WazirX fraud, the authorities detected the fraud while investigating the business activities of the exchange. WazirX is owned by Zanmai Labs Pvt. Ltd , while the cryptocurrency WRX is owned by Binance Investment Co. Ltd, Seychelles.

“According to the release, this exchange provides an option to the trader to transact in rupee or WRX. The WRX have to be purchased from the WazirX platform. The Taxpayer is charging commission on each transaction in cryptocurrency from both buyer and seller both, it said,” says the ANI report.